A Purchase of Supplies for $2 000 Plus $260 HST

question 14

Multiple Choice

A purchase of supplies for $2 000 plus $260 HST in the general journal would not be posted -

• A) if the Supplies and HST were recorded as credits and Accounts Payable as debits
• B) if the HST was omitted and the Accounts Payable credit was $2 000
• C) if the HST was omitted, Supplies debit was $2 260 and Accounts Payable credit was $2 260
• D) if the debit amounts did not equal the credit amounts

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Definitions:

Cost of Capital

The rate of return that a company must earn on its investment projects to maintain its market value and attract funds, including the cost of debt and equity financing.

Market Supply

The total amount of goods or services that are available for purchase within a specific market at a given time.

Competitive Market

A market structure characterized by a large number of buyers and sellers, where no single entity can influence the market price.

Market Prices

The amount of money that a buyer is willing to pay and a seller is willing to accept for a good or service in a competitive marketplace.